Brazil’s Infrastructure Minister goes to New York seeking investments

RIO DE JANEIRO, BRAZIL – Brazil’s Minister of Infrastructure, Marcelo Sampaio, will meet with banks and investment funds in New York, United States, to present the Brazilian model of concessions and the balance of the Federal Government’s portfolio of projects. The round of presentations begins this Monday, May 9, and runs until Friday, May 13.

The Ministry’s idea is to attract more private investment to the sector. For this, Sampaio must show the panorama of actions that maintain the continuity of projects based on less bureaucratic guidelines to bring foreign investors, important advances in funding sources, new modeling in contracts, and sustainable practices.

According to the Government, since 2019, 83 assets have been auctioned, and about R$100 billion (US$19 billion) in private investments have been contracted for the four transportation modals, which should create approximately 1.5 million jobs throughout the contracts.

There were 34 airports, 34 leased port terminals, six railroads – two new concessions, one cross-investment, and three early renewals – and six highways.

R$110 billion in contracted investments and the auction of 44 assets in 2022 are expected.

The members of the Brazilian delegation participating in the meetings are:

• Secretary of Fomento, Planning, and Partnerships of the Ministry of Infrastructure, Natália Marcassa;
• National Secretary of Civil Aviation, Ronei Glanzmann;
• Representatives from BNDES (National Bank for Economic and Social Development);
• Secretariat of the Investment Partnerships Program of the Ministry of Economy and the Ministry of Foreign Affairs.

During the week, the Brazilian commission should meet with more than 30 representatives of investment funds, banks, and financial institutions, such as GIP (Global Infrastructure Partners), Itaú BBA, BTG Pactual, GIC (Singapore Sovereign Fund), and the Australian Macquarie Fund.

AUCTIONS

On May 20, the auction of the BR-116/493/465/RJ/MG road project between Rio de Janeiro CIty and Governador Valadares in Minas Gerais state will take place. The auctions of the BR-040/495/MG/RJ projects, the main road link between Rio de Janeiro City and Minas Gerais state capital, Belo Horizonte, and the Paraná state integration ring, are also scheduled for 2022. In all, the concessions total more than R$80 billion.

For 2022, the seventh round of aviation auctions is still planned, with an estimated investment of R$5.8 billion. The bids include the concession of 15 airports, including Congonhas, in São Paulo City. Besides Campo Grande (Mato Grosso do Sul), Corumbá (Mato Grosso do Sul), Ponta Porã (Mato Grosso do Sul), Santarém (Pará), Marabá (Pará), Carajás (Pará), Altamira (Pará), Uberlândia (Minas Gerais), Uberaba (Minas Gerais), and Montes Claros (Minas Gerais).

In the port sector, the leasing of 19 port terminals and the Paranaguá Canal (Paraná) is planned. There is also the privatization of the ports of São Sebastião (São Paulo) and Itajaí (Santa Catarina). According to the government, since the beginning of the administration, 37 port leases have already been carried out, totaling R$6.1 billion in investments.

Finally, FCA’s and MRS’ contracts will be renewed early in the railway sector. Approximately 10,000 kilometers of railway network will receive R$55.7 billion in investments.

With information from Poder360